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What Is Schedule Rating?

Schedule rating allows your insurer to offer you a discount (or a surcharge) to your premium based on specific factors that the insurer believes will affect your insurable risk.

The plan cannot be based on any prior loss experience your business has had. However, it can take into consideration that the insurer does not feel that your experience modification factor truly reflects your risk.

For instance, if the insurer believes that clean, well­lit premises lead to fewer losses, and you have a clean, well­lit plant, the insurer can offer you a discount on your premium.

The maximum discount or surcharge allowed is ±35% in 1999. The limit will be ±25% effective 1/1/2000.